Beware the Noncompete!

Dan Frith

Contributor

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Let me disclose my bias. I hate noncompete provisions in employment agreements. They are bad for the employee....bad for the economy....and bad for innovation.

Don't know what I'm talking about? A noncompete contract is a written agreement between you and your employer that prohibits you from working in your chosen industry or profession for a specific period of time and in a specific geographic area, after you leave your current job. Many people sign these agreements without giving a thought as to how the agreement limits their options to earn a living in the future.

But there is good news. Not all noncompetes or covenants not-to-compete are valid and enforceable. State law controls whether the agreements are legal and each state treats noncompetes differently. We write about which noncompetes are legal under Virginia law at our blog.

My Advice: Don't sign a noncompete without reading it closely and consulting with an experienced attorney. It may cost you a little up front but...it could save you a lot of money and headaches down the road.